CNS Pharmaceuticals (CNSP) AI Stock Analysis

• Market Cap: $3.33M
• Dividend Yield: N/A
• Average Volume (3M): 381.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: N/A
• EPS Growth: 90.33%
• Country: US
• Employees: 3
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -1367.97
• Shares Outstanding: 2,944,381
• 10 Day Avg. Volume: 276,237
• 30 Day Avg. Volume: 381,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -0.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 253.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

CNS Pharmaceuticals' overall score reflects its challenging financial performance characterized by ongoing net losses and lack of revenue. However, positive developments in pivotal clinical trials and regulatory designations for key projects provide some optimism. Technical analysis indicates bearish momentum, while valuation metrics remain unfavorable due to the absence of earnings.

Positive Factors

Financial Stability

CNS Pharmaceuticals has been able to raise approximately $15M, providing sufficient cash runway into the first half of 2025.

Management Performance

Management, over the past few years, has done a remarkable job navigating the company through its most challenging period.

Potential Drug Efficacy

Berubicin has the potential to be the first anthracycline to successfully penetrate the BBB and be used in the treatment of GBM.

Negative Factors

Analyst Downgrade

Analysts are removing Berubicin from their model and downgrading CNSP shares to Hold, from Buy.

Clinical Trials

Berubicin, a brain penetrating anthracycline, failed on the primary of overall survival vs. lomustine in the P2 second line glioblastoma study.

Stock Performance

Shares are down ~60% on the news.

CNS Pharmaceuticals Business Overview & Revenue Model

Company Description

CNS Pharmaceuticals, Inc., a clinical pharmaceutical company, engages in the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. The company's lead drug candidate is Berubicin, an anthracycline that is in Phase I and II clinical trials that is used for the treatment of glioblastoma multiforme. It has license agreements with Houston Pharmaceuticals, Inc. and The University of Texas M.D. Anderson Cancer Center, as well as Animal Life Sciences, LLC; and a development agreement with WPD Pharmaceuticals Inc., as well as a collaboration agreement with Reata Pharmaceuticals, Inc. The company was incorporated in 2017 and is based in Houston, Texas.

How the Company Makes Money

CNS Pharmaceuticals primarily generates revenue through licensing agreements, research grants, and potential future sales of its drug candidates upon successful clinical trials and regulatory approval. The company may enter into strategic partnerships or collaborations with larger pharmaceutical companies to co-develop and commercialize its products, which can provide upfront payments, milestone payments, and royalties. Additionally, CNS Pharmaceuticals may raise capital through equity offerings to fund its research and development activities, which is a common practice in the biotechnology industry given the long development timelines and high costs associated with bringing new drugs to market.

CNS Pharmaceuticals Financial Statement Overview

Summary

CNS Pharmaceuticals faces significant financial challenges, including lack of revenue, high operating losses, and reliance on external financing due to negative cash flow. The balance sheet shows potential insolvency issues with liabilities significantly outpacing revenues, which is common for early-stage biotech firms but poses substantial risks.

Income Statement

CNS Pharmaceuticals shows a consistent lack of revenue, indicating challenges in commercializing products. Despite a marginal revenue in TTM (Trailing-Twelve-Months), the net loss remains significant, leading to extremely negative profit margins. The company struggles with high operating losses, suggesting inefficiencies or high R&D costs typical in the biotechnology industry.

Balance Sheet

The balance sheet shows weak financial health with a negative equity in the prior year, indicating potential insolvency issues. Though equity has improved slightly in the TTM, the company's total liabilities significantly outpace its revenues, a concern for long-term viability.

Cash Flow

CNS Pharmaceuticals has a negative operating cash flow, suggesting difficulties in sustaining operations without external financing. The free cash flow trend is negative, indicating continued reliance on financing activities to support cash consumption. This is a common issue for early-stage biotech firms but poses significant risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.36K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
3.84K	-4.13K	-11.76K	-13.07K	-11.10K	―
	EBIT
-17.08M	-18.87M	-15.27M	-14.03M	-9.45M	-3.83M
	EBITDA
-17.04M	-18.86M	-15.26M	-14.47M	-9.44M	-3.83M
	Net Income Common Stockholders
-17.06M	-18.85M	-15.27M	-14.50M	-9.46M	-3.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
242.69K	548.72K	10.06M	5.00M	14.04M	7.24M
	Total Assets
249.13K	1.70M	13.05M	8.76M	15.85M	7.91M
	Total Debt
121.83K	300.81K	409.97K	387.79K	439.29K	0.00
	Net Debt
-120.86K	-247.91K	-9.65M	-4.62M	-13.60M	-7.24M
	Total Liabilities
214.17K	6.13M	4.92M	2.14M	1.91M	311.00K
	Stockholders Equity
34.97K	-4.43M	8.13M	6.62M	13.95M	7.60M
Cash Flow		Free Cash Flow
-14.18M	-14.14M	-10.56M	-13.54M	-7.34M	-3.57M
	Operating Cash Flow
-14.18M	-14.14M	-10.56M	-13.54M	-7.32M	-3.55M
	Investing Cash Flow
-2.16K	-3.90K	-4.42K	-5.75K	-17.95K	-20.12K
	Financing Cash Flow
20.24M	4.64M	15.61M	4.51M	14.13M	10.26M

CNS Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNSP, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 2.10, below the 50-day MA of 3.19, and below the 200-day MA of 13.35, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 30.60 is Neutral, neither overbought nor oversold. The STOCH value of 3.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNSP.

CNS Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	76 Outperform	$2.44B	10.37	38.89%	―	31.85%	―
AVXL	62 Neutral	$708.58M	―	-37.72%	―	―	-3.08%
MRNS	48 Neutral	$30.37M	―	210.50%	―	1.63%	6.97%
XENE	48 Neutral	$2.34B	―	-27.85%	―	―	-10.19%
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
SAGE	48 Neutral	$425.45M	―	-63.37%	―	-52.30%	27.13%
CNSP	42 Neutral	$3.33M	―	-1703.39%	―	―	90.33%

CNS Pharmaceuticals Corporate Events

CNS Pharmaceuticals Advances Berubicin and TPI 287 Projects

CNS Pharmaceuticals has completed enrollment in a pivotal clinical trial for Berubicin, a promising treatment for glioblastoma multiforme, with primary data analysis expected in the first half of 2025. The company has also in-licensed TPI 287, which has received Orphan and Fast Track designations, indicating strong potential for addressing unmet needs in brain cancer treatment.